Payout: Storj Token prices up 200-300% when exchange rate selected?

i will say tho, these last few months there is a very annoying trend that the storj token value lows seem to be during the middle of the month and as we close on payout the prices rise…

duno if thats because people rebuy their tokens for tardigrade at the 1st of the month or whatever… but it sure does seem a bit unnatural market behavior… but it may simply be reverberations from when the launch happened, will take a while for the value to normalize.

i sure hope it won’t keep rising from now and until payout…

In a way you as a node runner in a blockchain are investing in the network and therefore it’s not uncommon that this investment can rise or fall, but one thing will be clear when doing native tokens, you’ll never have a discussion about conversion rates!

And yes there will always be a trade-off, SNO’s can decide themselves if they want to sell the tokens or leave them as an investment for later time.

For one thing to me it looks a big coincidence that the Stefan Benten payout was done around the rise of the STORJ token, very tricky to say, but if we looked at this business wise it saved the team a lot of tokens to payout…
This in my opinion is not a way to treat your Node runners for their investment and it would be fair to payout the tokens in the value at which they were locked and not when the $ --> STORJ value is at a convenient level for the company!

Now that this is out, I don’t know if this has been discussed earlier and explained by the team!?
Might be worth to talk this through in a separate thread…
@jocelyn

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You will have the exact same conversation. If the exchange rate falls, people will ask why they have not been paid earlier and vice versa. People pay their rent, for food etc. in fiat. That’s why basing payments for tardigrade on STORJ won’t work either.

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i fully agree, tho my node being new i don’t have to much of a dog in that fight…
but yeah market manipulation and payout timing is without a doubt one of the concerns i see going forward.

node runner… i like it xD

i think the current methods is flawed, i won’t blame any party for any of the relevant issues, but i really think more thought should be put towards making the system better… like for one i would like to earn storj instead of dollars…

i mean come on… we are earn dollar value which is then paid out in storj tokens without any seemingly totally fixed schedule / precision timing and then we convert storj tokens back to dollars to get our payout…

i’m fine with the earning dollar value, in fact i think thats a very good idea… but stuff like the held back amount… shouldn’t that be in storj tokens instead, so that there isn’t the issue of satellites potentially waiting with payouts until token prices are high…

ofc that would then put that loss on the satellites, because if they owe 10000storj tokens and the price goes from 40 cents to 80 cents
then it suddenly costs them twice the amount to pay the SNO

i duno what would be a fair system… i know that we will need very precise schedules if claims of abuse of power isn’t going to come into play… regardless if its actually an abuse of power or not…

It depends where the Storj tokens come from, I might hope this is a separate pool or they are minted somehow (should be somewhere in the economics guide).
What I mean to say rewards for Node Runners is something else than people paying for the Tardigrade service. Come on, the node runners make the network work! So it would be fair to look for a decent investment program and I fully agree with you, we would like to earn STORJ tokens and not reverted to STORJ... In no other chain I would earn instead of native token, if it something else it would be a governance token!

100% of STORJ tokens have already been minted. Storj tokens were originally sold via an ICO in 2017. Mining is not possible. The source of payouts is open to anyone. Just take a look at the payout transaction on Etherscan.

This was a token sale in 2017 of remained STORJ converted from SJCX.
The ICO was in SJCX back in 2014. Then all claimed SJCX have been converted to STORJ until end of 2019
Part of tokens have been burned meanwhile.
You can read more there:

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well the token supply is limited, tho some of them is locked for future usage by storj.

so it is a cyclical ecosystem or whatever its called.

i do kinda like the idea that dollar value is earned and then the storj token value is held by storj until the payout, so essentially one is paid what storj is worth at the time its earned…

ofc there are more than a few problems with this approach… the math just becomes … annoying to even attempt to calculate and verify will ofc be the same headache… so tho that is the approach i like it cannot work…

so lets assume we have to keep the monthly schedule we are on now…

  1. a company puts 1tb of data on the network and downloads it again in the same month.
  2. by the end of the month they pay in storj tokens.
  3. then 14 days later storj pays the SNO’s in storj tokens

this current method is highly dependent on storj tokens to keep a fairly stable value, else storj or SNO’s will loose value, if we say the storj token value dropped from say 80 cents to 4 cents… and expense of 10k$ to SNO’s would explode into a cost of 200k $ worth of storj tokens, just like it would vice versa.

and tho this is not a big issue for storj llc yet, because the golden rule is then one with all the gold makes the rules… xD

this may be a practical logistical way to distribute the tokens and calculate prices, but imo it’s a bit like taking a row boat out to sea… it will seem fine in fair weather and until one starts to get far enough out and the big waves, shade and provisions starts to come into play…

then it’s a disaster waiting to happen, ofc there are some advantage to this… like say if SNO’s started to flood the marked with Storj tokens shortly before we get paided, which would essentially bring down the prices and thus give us more storj payout.

ofc with that the whole issue of known variables comes into play and storj labs could just start buying up tokens before payouts to counter it…

infact there would be a financial incentive for storj to do this, so long as the ecosystem is healthy.
because tardigrade customers will buy the tokens when they need them anyways… or if they think they are undervalued, and since some of storjs capital reserves are in storj tokens then less excess tokens there is in the ecosystem the better value they will get.

but i suppose thats what the whole rolling lock down on the token pools are for, to ensure that storj labs cannot just dump the entire bunch on the market…

ofc they cannot do that because they would need storj to pay SNO’s so some would have to remain, but still with that much of a market share it’s fairly easy to manipulate a market value of any limited supply goods…

but yeah it’s very advanced stuff long term, but very interesting…
something i could rant and ponder over for weeks lol